3. The following information relates to the shares of SRL Lid. and LSR Inc. Company Expected Return Beta (B) SRL Ltd. 14.5% 1.25 LSR Inc. 12.5% 1.75 If the risk-free rate of return is 3.5% and the market price of risk is 6%, which of the following statements about the common shares of SRL and LSR is true? a. The shares of both companies are overvalued. b. The shares of both companies are undervalued. c. The shares of SRL are overvalued and the shares of LSR are undervalued. d. The shares of LSR are overvalued and the shares of SRL are undervalued